UK-based insurer Aviva said on Friday it agreed to sell its entire shareholding in Aviva Poland to Germany’s Allianz for €2.5 billion in cash, completing a programme to sell European and Asian assets it started last year.

Allianz is also buying Santander’s minority stake in the Aviva Poland business, bringing the total value of the transaction to €2.7 billion.

Santander will retain a 49% holding in Aviva Poland’s life and general insurance joint ventures.

“Aviva will now focus on its strongest businesses in the UK, Ireland and Canada where it has leading market positions and strong growth potential,” said Aviva.

“The divestment of Aviva Poland is the eighth transaction Aviva has announced in the past eight months, and this successfully concludes the planned refocus of the group’s portfolio.”

Aviva CEO Amanda Blanc said: “The sale of our Polish business is an excellent conclusion to the refocusing of our portfolio announced just eight months ago.

“The sale of our eight non-core businesses will generate total cash proceeds of £7.5 billion.

“We have made significant progress with our debt reduction plan and in due course we will make a substantial return of capital to shareholders.

“Our strategic focus is now on our strongest businesses in the UK, Ireland and Canada where we have leading market positions and strong growth potential.

“This transaction delivers excellent value for Aviva shareholders.

“It is also a very positive outcome for our customers, employees and distribution partners and we are confident that Aviva Poland will continue to prosper under Allianz ownership.”

Allianz said: “Through the transaction, Allianz will double its revenues in the attractive Polish insurance market and achieve a well-balanced business mix between property/casualty and life insurance.

“In particular Aviva’s strong focus on the dynamic and profitable Polish life protection market will significantly enhance Allianz’s operating profitability.

“In addition, the strong tied agents’ network and the long-term bancassurance joint venture with Santander will bolster Allianz’s distribution footprint and market position.”

Allianz CEO Oliver Bäte said: “We are delighted to further strengthen visibility of the Allianz brand in Central Eastern Europe and pursue our successful growth strategy in the region.

“By combining our insurance and digital expertise and strong investments in technological innovation, customers will benefit from our innovative products and outstanding services.”